T. ROWE PRICE: RETIREMENT SAVERS LACK KNOWLEDGE OF SOCIAL SECURITY BENEFITS, WITH YOUNGER GENERATIONS PESSIMISTIC ABOUT FUTURE PAYMENTS
T. Rowe Price (TROW) has released a new white paper highlighting significant knowledge gaps in Social Security benefits understanding among retirement savers. The study, based on their 2024 Retirement Savings and Spending Study, reveals that even pre-retirees lack basic comprehension of the system.
Key findings show that while most pre-retirees (aged 50+) understand early claim penalties, only 62% know benefits increase with delayed claims, and just 45% know their approximate benefit amount. Among younger generations, 80% understand payroll tax funding, but two-thirds incorrectly believe benefits automatically start at 65.
Confidence in Social Security is notably low, with only 38% of respondents believing in the system's ability to pay scheduled benefits. Gen Z and millennials expect to receive just over half their scheduled benefits, while boomers anticipate 88%. The study also found support for proposed funding solutions, with 64% of respondents using SSA.gov for information, increasing to 85% among those aware of their benefits.
T. Rowe Price (TROW) ha pubblicato un nuovo documento che evidenzia significative lacune nella comprensione dei benefici della Sicurezza Sociale tra i risparmiatori in pensione. Lo studio, basato sul loro Studio di Risparmio e Spesa per la Pensione 2024, rivela che anche i pre-pensionati mancano di una comprensione di base del sistema.
I risultati chiave mostrano che, sebbene la maggior parte dei pre-pensionati (di età superiore ai 50 anni) comprenda le penalità per la richiesta anticipata, solo il 62% sa che i benefici aumentano con le richieste ritardate e solo il 45% conosce l'importo approssimativo dei propri benefici. Tra le generazioni più giovani, l'80% comprende il finanziamento tramite tasse sul lavoro, ma due terzi credono erroneamente che i benefici inizino automaticamente a 65 anni.
La fiducia nella Sicurezza Sociale è notevolmente bassa, con solo il 38% degli intervistati che crede nella capacità del sistema di pagare i benefici programmati. La Gen Z e i millennials si aspettano di ricevere poco più della metà dei loro benefici programmati, mentre i boomer anticipano l'88%. Lo studio ha anche trovato supporto per le soluzioni di finanziamento proposte, con il 64% degli intervistati che utilizza SSA.gov per informazioni, aumentando all'85% tra coloro che sono a conoscenza dei propri benefici.
T. Rowe Price (TROW) ha publicado un nuevo documento que destaca las importantes lagunas en la comprensión de los beneficios de la Seguridad Social entre los ahorradores para la jubilación. El estudio, basado en su Estudio de Ahorro y Gasto para la Jubilación 2024, revela que incluso los pre-jubilados carecen de una comprensión básica del sistema.
Los hallazgos clave muestran que, aunque la mayoría de los pre-jubilados (de 50 años o más) comprenden las penalizaciones por reclamaciones anticipadas, solo el 62% sabe que los beneficios aumentan con las reclamaciones retrasadas y solo el 45% conoce el monto aproximado de sus beneficios. Entre las generaciones más jóvenes, el 80% comprende el financiamiento a través de impuestos sobre la nómina, pero dos tercios creen erróneamente que los beneficios comienzan automáticamente a los 65 años.
La confianza en la Seguridad Social es notablemente baja, con solo el 38% de los encuestados creyendo en la capacidad del sistema para pagar los beneficios programados. La Generación Z y los millennials esperan recibir poco más de la mitad de sus beneficios programados, mientras que los boomers anticipan el 88%. El estudio también encontró apoyo para las soluciones de financiamiento propuestas, con el 64% de los encuestados utilizando SSA.gov para información, aumentando al 85% entre aquellos que son conscientes de sus beneficios.
T. Rowe Price (TROW)는 은퇴 저축자들 사이에서 사회 보장 혜택에 대한 이해의 중요한 지식 격차를 강조하는 새로운 백서를 발표했습니다. 2024년 은퇴 저축 및 지출 연구를 기반으로 한 이 연구는 심지어 은퇴를 앞둔 사람들도 시스템에 대한 기본적인 이해가 부족하다는 것을 보여줍니다.
주요 발견에 따르면, 50세 이상의 대부분의 은퇴 예정자들이 조기 청구에 대한 벌칙을 이해하고 있지만, 단지 62%만이 청구를 연기하면 혜택이 증가한다는 것을 알고 있으며, 45%만이 자신의 대략적인 혜택 금액을 알고 있습니다. 젊은 세대 중 80%는 급여세 자금 조달을 이해하고 있지만, 3분의 2는 혜택이 자동으로 65세에 시작된다고 잘못 믿고 있습니다.
사회 보장에 대한 신뢰는 눈에 띄게 낮으며, 응답자의 38%만이 시스템이 예정된 혜택을 지급할 수 있다고 믿고 있습니다. Z세대와 밀레니얼 세대는 예정된 혜택의 절반 이상을 받을 것으로 예상하는 반면, 베이비붐 세대는 88%를 예상합니다. 이 연구는 제안된 자금 조달 솔루션에 대한 지지도 발견했으며, 응답자의 64%가 SSA.gov에서 정보를 이용하고, 혜택에 대해 알고 있는 경우에는 85%로 증가합니다.
T. Rowe Price (TROW) a publié un nouveau document mettant en évidence d'importantes lacunes de connaissances concernant la compréhension des prestations de sécurité sociale parmi les épargnants en vue de la retraite. L'étude, basée sur leur étude de l'épargne et des dépenses pour la retraite de 2024, révèle même que les pré-retraités manquent de compréhension de base du système.
Les résultats clés montrent que, bien que la plupart des pré-retraités (âgés de 50 ans et plus) comprennent les pénalités de demande anticipée, seulement 62% savent que les prestations augmentent avec les demandes différées, et seulement 45% connaissent le montant approximatif de leurs prestations. Parmi les jeunes générations, 80% comprennent le financement par les impôts sur les salaires, mais deux tiers croient à tort que les prestations commencent automatiquement à 65 ans.
La confiance dans la sécurité sociale est remarquablement faible, avec seulement 38% des répondants croyant en la capacité du système à payer les prestations programmées. La génération Z et les milléniaux s'attendent à recevoir un peu plus de la moitié de leurs prestations programmées, tandis que les baby-boomers anticipent 88%. L'étude a également trouvé un soutien pour les solutions de financement proposées, avec 64% des répondants utilisant SSA.gov pour des informations, ce qui passe à 85% parmi ceux qui sont au courant de leurs prestations.
T. Rowe Price (TROW) hat ein neues Weißbuch veröffentlicht, das bedeutende Wissenslücken im Verständnis von Sozialversicherungsleistungen unter Rentensparern hervorhebt. Die Studie, die auf ihrer Studie zu Rentenersparnissen und -ausgaben 2024 basiert, zeigt, dass selbst vor der Rente stehende Personen grundlegende Kenntnisse über das System vermissen.
Wichtige Ergebnisse zeigen, dass, obwohl die meisten vor der Rente stehenden Personen (50 Jahre und älter) die Strafen für vorzeitige Anträge verstehen, nur 62% wissen, dass sich die Leistungen bei verzögerten Anträgen erhöhen, und nur 45% kennen ihren ungefähren Leistungsbetrag. Unter jüngeren Generationen verstehen 80% die Finanzierung durch Lohnsteuern, aber zwei Drittel glauben fälschlicherweise, dass die Leistungen automatisch mit 65 Jahren beginnen.
Das Vertrauen in die Sozialversicherung ist bemerkenswert niedrig, da nur 38% der Befragten an die Fähigkeit des Systems glauben, die geplanten Leistungen zu zahlen. Die Generation Z und die Millennials erwarten, etwas mehr als die Hälfte ihrer geplanten Leistungen zu erhalten, während die Babyboomer 88% erwarten. Die Studie fand auch Unterstützung für vorgeschlagene Finanzierungslösungen, wobei 64% der Befragten SSA.gov für Informationen nutzen, was bei denjenigen, die über ihre Leistungen informiert sind, auf 85% ansteigt.
- Strong market research positioning demonstrating TROW's leadership in retirement planning
- 67% of investors with financial advisors use TROW's services for Social Security guidance
- Research reveals significant knowledge gaps in TROW's client base regarding retirement benefits
- Low confidence in Social Security system could impact retirement product sales and advisory services
Education is Key to Closing the Social Security Knowledge Gap and Restoring Confidence in the System
Despite having the highest accuracy rates on Social Security questions presented in the survey, older respondents still had notable gaps in knowledge. While nearly all pre-retirees (aged 50 and older) understood that a reduction in benefits occurs when Social Security is claimed before full retirement age, fewer (
Meanwhile, confidence in Social Security's ability to pay out currently scheduled benefits was remarkably low among survey respondents, with only
The white paper further examines this knowledge gap and pessimism as well as the popularity of potential solutions to the long-term funding challenges of the program.
Additional key findings include:
- None of the survey's solutions to Social Security's long-term funding challenges gained widespread support from survey respondents. The choice of Congress not taking any action, thereby allowing the Social Security Trust Fund to deplete (which would result in a
20% benefit cut) was the least popular solution, with60% disliking this option. Raising or eliminating the income cap on payroll taxes, while technically receiving the most support in comparison to the other solutions, still only garnered approval from just over one-third of respondents. - The official Social Security website, SSA.gov, is a frequent source for information about Social Security benefits, used by
64% of survey respondents. Use of the site jumps to85% among respondents who are aware of their approximate benefits, highlighting a link between information-seeking behavior and benefit awareness. - Among investors who work with financial advisors,
67% turned to them for Social Security guidance. While that indicates advisors are an important information source, it also represents an opportunity to further educate their clients on the benefit.
"This research identifies a major gap in retirement savers' knowledge about Social Security benefits that can adversely affect their retirement," said Roger Young, CFP®, senior financial planner at T. Rowe Price. "Whether investing on their own or through a financial advisor, it's critically important for investors to learn as much as they can about Social Security. Greater understanding can help individuals make more informed decisions and lead to better retirement outcomes."
ABOUT T. ROWE PRICE
Founded in 1937, T. Rowe Price (NASDAQ – GS: TROW) helps individuals and institutions around the world achieve their long-term investment goals. As a large global asset management company known for investment excellence, retirement leadership, and independent proprietary research, the firm is built on a culture of integrity that puts client interests first. Clients rely on the award-winning firm for its retirement expertise and active management of equity, fixed income, alternatives, and multi-asset investment capabilities. T. Rowe Price serves millions of clients globally and manages US
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SOURCE T. Rowe Price Group
FAQ
What percentage of pre-retirees understand Social Security delayed benefit increases according to TROW's 2024 study?
How confident are retirement savers in Social Security's future benefit payments based on TROW's research?
What percentage of Gen Z and Millennial workers expect to receive their full Social Security benefits?
What percentage of T. Rowe Price survey respondents use SSA.gov for Social Security information?
How many pre-retirees know their approximate Social Security benefit amount according to TROW's study?
